A coalition of non-profits are putting an ultra dangerous proposal on the ballot in 2026. They are seeking to establish a Progressive Tax that "will only impact the top 2% of earners raising 2.3 Billion a year" (individual and corporate) in Colorado. SEEMS harmless enough. Oh good....it will put money towards education, child care, etc. you might think. This ballot initiative is an income tax. It taxes you on ever dollar that you bring in. Still seem reasonable?
Child Care is expensive. We've talked incessantly about how policy decisions (nationally and locally) are driving up the cost of care to the point that it's very difficult for families to manage. THIS TAX is on INCOME. At 30 children a week programs start to see an increase in their tax rate under this bill. NOTHING accounts for the costs that programs incur in anything that we've seen. Thousands of programs in Colorado are operating below profitable levels and would still be subject to this tax. That will be a death nail for programs as Colorado continues to build field of dream programs on the backs of "the wealthy".
By the way, OTHER non-profits are moving towards asking CO citizens to pay another $300 Million a year to directly support child care too on top of this progressive tax.
Another problem with progressive tax.....
If Colorado continues to just tax and fee it's citizens to death there will be more of us who leave the state for relief. When that happens....it's a logical step to just tax a few more levels of revenue earners (employers) in the state. This doesn't just potentially undo child care....it breaks our state.
A better solution? Cut costs and programs that were funded under COVID emergency funds. They should be the first thing to go. Those funds were used to expand government programming with the absolute knowledge that there was not any funding in the future to maintain that programming. As a business, when you can't afford to do things you re-evaluate everything you do to bring your budget into alignment with what you can afford to do. Not Colorado! They just put more taxes on the ballot and sell citizens stories that pull on heart strings to get you to check yes! This is also referred to as manipulation. If they can engage your heart instead of your mind you will say, hey that sounds like a good idea.
ECEA is waiting to see what the ballot initiative to fund child care will entail to determine whether or not we will support it. This article is just letting you know what is coming in November 2026.